Question About Escrow

icanrace

icanrace

Member
I recently received a check from my mortgage company due to the estimate on my escrow account. My question is, should I cash it or send it back and let it set there for next years estimate? If I send it back it will not affect my payment amount any for 2009. It will just sit there until the end of next year. I thought when we got our house the lady told me to send it back if one ever got sent to me in the mail. Is this the right choice?

Someone that understands this stuff please give me your thoughts.

Thanks!
 
If i receive a refund escrow check i keep it put in my savings, use it for vacation money or a needed repair around the house. They will figure your escrow every year where you should have a small reserve and anything over that they will refund, The first year we were in our house they underestimated out property tax so it made our monthly mortgage go up by 500 a month the 2 nd year after that it fell around 300 or so, you can keep up with what you will need year to year because if you have a 30 year fixed your p and i will stay steady so it will depend on increases in your insurance and property tax.
 
if you just purchased your home, usually the title company will hold more funds just in case everything is covered and then they have to send you the remaining of the funds not used. I've had similar checks everytime i refinanced or purchased my home. you should cash it its your money!
 
DormantFiber said:
if you just purchased your home, usually the title company will hold more funds just in case everything is covered and then they have to send you the remaining of the funds not used. I've had similar checks everytime i refinanced or purchased my home. you should cash it its your money!
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We've had our home for 4 years. It's just an estimated difference on their part I guess. I just don't want to get stuck owing 300.00 at the end of the year if I don't send it back......
 
if its an estimate difference on their part it seems they over charge you for something the first time around and just now they came to their senses, that should be your money to do what ever you want.
 
If you send it back it will have no bearing this year....should your homeowners insurance or taxes go up next year, it might help you from having your house payment go up though.

holy
 
icanrace said:
I recently received a check from my mortgage company due to the estimate on my escrow account. My question is, should I cash it or send it back and let it set there for next years estimate? If I send it back it will not affect my payment amount any for 2009. It will just sit there until the end of next year. I thought when we got our house the lady told me to send it back if one ever got sent to me in the mail. Is this the right choice?

Someone that understands this stuff please give me your thoughts.

Thanks!
Click to expand...
mortgage lenders always overestimate your escrow to cover everything + the unexpected (ie mis calculation in property taxes). if they sent it back to you, keep it...its yours. they have to refund overages at the end of the year.

I got a 2k check from my insurance company bc i already paid insurance in full in may, but my mortgage company cut them a check in august for some unknown reason... i calculated it out and had enough to cover my taxes and pmi, so i deposited the 2k into my bank account. taxes came due in november and i just hit enough that month in my escrow account to cover them.

long story short..... if your mortgage company sends you money... keep it... if you are short on funds, you can always deposit some of this to cover it. better YOU make the interest on it then THEY do. Just keep it in your acc't and accept the fact that you might have to send some back if your escrow is too low to cover something.

KEEP IT
 
Put it back in escrow, that is what I did. That way you will have a surplus and if things go up again you have that extra insurance. Don't be dumb with finances, gotta be smart......
 
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